Mumbai: The Indian government's fiscal policy has to be in tandem with the Reserve Bank of India's monetary policy, the central bank's deputy governor H.R. Khan said on Tuesday.

The RBI will be reviewing its monetary policy on Oct. 30, just weeks after the government announced a slew of reform measures to liberalise the economy, and to try rein-in the fiscal deficit.

The steps from the government have given rise to hopes among a few economists that the central bank will respond with a rate cut. Khan was responding to questions by the audience at a banking conference.